Goldman Sachs is preparing to remove race, gender identity, sexual orientation, and other diversity factors from the criteria its board uses to evaluate potential candidates, The Wall Street Journal reported on Monday, citing sources.
What changes now?
As per the report, the board’s governance committee currently chooses qualified candidates based primarily on four factors, one of which is a broad description of diversity, such as viewpoints, background, work and military service.
This is in addition to “other demographics”, which includes a list of diversity, equity, and inclusion (DEI) factors.
Now, Goldman Sachs plans to cross off the “other demographics” including race, gender identity, ethnicity and sexual orientation, sources told the WSJ.
Why the change?
According to the WSJ, the Wall Street giant’s decision followed a behind-the-scenes request from the conservative activist nonprofit National Legal and Policy Center, which owns a small stake in the bank.
The group submitted a proposal to the firm in September, seeking to remove the DEI criteria, sources were quoted as saying.
The group requested that its proposal be included in Goldman’s proxy statement that will be circulated to shareholders ahead of the firm’s annual shareholder meeting this spring, the WSJ reported.
Goldman reportedly informed the NLPC that it plans to remove the DEI criteria. An agreement was also signed between the two parties, which also includes the activist group withdrawing its proposal.
Sources said Goldman’s board is expected to approve the new language this month.
Anti-DEI proposals
Goldman, like many large banks, has pulled back on DEI efforts over the past year.
It retooled its diversity program, One Million Black Women, a multibillion-dollar commitment to invest in Black businesswomen and nonprofit leaders, including removing references to race.
It also ended its requirement that companies in the US and Western Europe have diverse boards for the bank to take them public.
Notably, US President Trump’s executive order early last year directed federal departments and agencies to launch civil investigations into DEI programs at companies.
Since taking office last year, Trump has launched a broad campaign against diversity, equity, and inclusion (DEI) practices in both the government and the private sector, alleging that these programs are discriminatory
